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Old 25th August 2020, 11:47   #1
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Invoice fraud / scam by a Vespa dealer - Kings Auto, Telangana

My family has experienced the worst buying experience of any product we have ever purchased.
I will elaborate the series of nightmares in a detailed manner.

Vehicle details:

Maker: Piaggio
Vehicle: Vespa LX BS4
Color: Silver
Dealership: Kings Auto, LB Nagar, Hyderabad
Temporary
Registration no: TS07BDTR9913
Date of Temporary
Registration: 12-02-2020

1. We had initially chosen a BS4 black Vespa. Upon delivery, while filling up the tank, we realized that the fuel was leaking as there was a hole in the tank. A HOLE IN THE FUEL TANK OF A BRAND NEW VEHICLE. Upon enquiring why we have recieved a defective product, the dealer was EXTREMELY RUDE AND INCONSIDERATE stating that "I do not manufacture the bikes, it is not my fault"

2. Due to this, we had changed the color to a silver vespa as there were no more black ones in stock. Knowing that the customer has wasted a whole tank of fuel on the previous bike, there was no compensation of fuel or any other kind from the dealer.

3. The TEMPORARY REGISTRATION papers stated that the vehicle was BS6. When we asked the dealer he bluntly said that it was not gonna be any problem.

4. While driving the new silver vespa home, I noticed that if I used a handful of front brake the handle would wobble vigorously. Upon enquiry we were told it is a issue that will be resolved after the first service. Although skeptical, we let it go and waited for the first service.

5. After regularly following up, the registration invoice papers were given to us 25 days after delivery. The dealer was LEAST BOTHERED and there was very minimal contact from his end.

6. After the first service, the front still wobbled violently on using the front break owing me to believe that it is a clear case of a manufacturing defect ie front fort issue. THE DEALER HANDED US OVER ANOTHER DEFECT VEHICLE AFTER RECIEVING A DEFECT VEHICLE IN THE FIRST PLACE. This has gone from a broken fuel tank on the 1st scooty to improper functioning front forks on the second.

7. Upon registration of the bike, the RTO had clearly REJECTED REGISTRATION, based on the fact that the invoice states the silver vespa to be a BS6 MODEL whereas it was a BS4 which is a clear case of FRAUD. Keeping in mind the COVID 19 outbreak, we had cautiously stepped out to get the vehicle registered, only to witness a case of INVOICE FRAUD. The invoice read a total payment of ONLY 65000 whereas the total payment was 86000.

Me and my family are convinced that we would neither buy nor recommended anybody we know to buy a vespa after this experience. Piaggio Vespa is a PREMIUM product which separates itself from the rest by being a PREMIUM offering from a PREMIUM manufacturing company. The same premium organization has served us with utmost ignorance and aloof arrogance while constantly lying and cheating us.

After telling the dealer about the registration fiasco repeatedly they have not botheted coming up with amy solution till date. The RTO demanded that the dealer responsible for this should come within their presence as this is a clear case of fraud. Does everybody else at Piaggio treat their customers like a joke? This is downright pathetic.

I feel lost at the moment not knowing how to deal with this situation. It has been 6 months and the vespa does not have a set of license plates.
With the BS4 registration deadline, how do I proceed with this? Your wise inputs would be of paramount importance.
ps. Pictures of original documents attached.

I'm gonna add a couple lines to my already long post, because I am new here.
I had been an active user of your esteemed website since 2012 when my dad bought the then all new Renault Duster. I've turned 22 this year and decided to become a member of the Team Bhp community myself since I've gained a reasonable level of expertise in automobiles, although my love for cars began before I could even walk

Invoice fraud / scam by a Vespa dealer - Kings Auto, Telangana-form22.jpg

Invoice fraud / scam by a Vespa dealer - Kings Auto, Telangana-tempregist.jpg

Last edited by Aditya : 25th August 2020 at 17:01. Reason: Name and address masked
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Old 25th August 2020, 12:39   #2
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re: Invoice fraud / scam by a Vespa dealer - Kings Auto, Telangana

Might I suggest seeing a lawyer specializing in Consumer Protection Law?

The CPA,2019 which came into force in July this year empowers the Consumer to a large extent and makes the processes a lot easier than before. Chapter 6 of the Act is what shall be useful to you. IIRC, you don't need a lawyer to approach a redressal forum, but it is recommended that you consult one.

Do keep us posted on what happens.
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Old 25th August 2020, 12:59   #3
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re: Invoice fraud / scam by a Vespa dealer - Kings Auto, Telangana

Did you take up the matter with Piaggio India? If not, contact them and lets see what is their reaction to this.

email: vespaindia@piaggio.co.in

Phone: 1800-1088-784

They also have twitter, facebook. Contact them everywhere.

https://twitter.com/Vespa_IN

Last edited by NH08 : 25th August 2020 at 13:01.
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Old 25th August 2020, 13:03   #4
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re: Invoice fraud / scam by a Vespa dealer - Kings Auto, Telangana

Quote:
Originally Posted by adwaith View Post
Might I suggest seeing a lawyer specializing in Consumer Protection Law?
Thats also the first thing that came to my mind. Probably lawyers can comment.

While buying we sign a lot of papers , half of which we do not understand. When you are going through an auto loan , rest assured, you are getting an unwanted credit card. If the OP has signed any disclaimer to the effect like " i am aware of what i am purchasing" , then it would complicate the case in court. Things would also get further complicated if dealer can show some email exchanges prior to purchase that it was an BS4 vehicle sold on discount.

In the absence of such awkward facts, it does look a fit case for consumer court. No idea how long it would last.

P.S : Is this Kings Auto even an authorized Vespa dealer?. I checked with the website of Vespa india and in Hyd they have 3 dealers which does not include this one.

Last edited by srini1785 : 25th August 2020 at 13:07.
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Old 25th August 2020, 13:50   #5
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re: Invoice fraud / scam by a Vespa dealer - Kings Auto, Telangana

Quote:
Originally Posted by srini1785 View Post
While buying we sign a lot of papers , half of which we do not understand. When you are going through an auto loan , rest assured, you are getting an unwanted credit card. If the OP has signed any disclaimer to the effect like " i am aware of what i am purchasing" , then it would complicate the case in court.
While Caveat Emptor, does apply, the manufacturer or the seller, cannot just wash his hands of the matter. They are liable to a certain extent. Generally, products which are brand new are not sold on an as is what is basis, and they are subject to certain levels of quality and fitness.

That said, please please read all the documents that you sign. They maybe be fixed form contracts but make sure you know what you're getting into. Clarify the parts that you aren't comfortable with.

Quote:
Things would also get further complicated if dealer can show some email exchanges prior to purchase that it was an BS4 vehicle sold on discount.
Then, the fault would rest on the buyer. If there are such terms in those discussions (which I doubt in this case there was) the buyer fully well knew what he was getting into. But he is definitely eligible to be adequately compensated for the defects, especially since it should be under warranty.

Quote:
In the absence of such awkward facts, it does look a fit case for consumer court. No idea how long it would last.
That's where the CPA, 2019 comes which IIRC has certain limitations in place to speed up the processes.
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Old 25th August 2020, 19:50   #6
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Re: Invoice fraud / scam by a Vespa dealer - Kings Auto, Telangana

Wish you had checked all the paperwork. Still, this kind of cheating isn't expected from an authorised dealer.

Quote:
Originally Posted by srini1785 View Post
P.S : Is this Kings Auto even an authorized Vespa dealer?. I checked with the website of Vespa india and in Hyd they have 3 dealers which does not include this one.
Seems to be. From Google - there are lots more listings linking him to Vespa:
Invoice fraud / scam by a Vespa dealer - Kings Auto, Telangana-annotation-20200825-194909.png
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Old 25th August 2020, 21:50   #7
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Re: Invoice fraud / scam by a Vespa dealer - Kings Auto, Telangana

This is worrying! I have purchased a brand new bike recently but the invoice only shows the ex-showroom cost? Nowhere is the total invoice price I paid mentioned.

The tax paid and insurance receipts have been given to me separately though. Should I be worried?
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Old 25th August 2020, 22:23   #8
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Re: Invoice fraud / scam by a Vespa dealer - Kings Auto, Telangana

Quote:
Originally Posted by RomanPearce View Post
I feel lost at the moment not knowing how to deal with this situation. It has been 6 months and the vespa does not have a set of license plates.
With the BS4 registration deadline, how do I proceed with this? Your wise inputs would be of paramount importance.
ps. Pictures of original documents attached.
Please do not drive that Vespa on main roads as the registration was rejected by RTO and it is now illegal to drive the vehicle. Get hold of a good lawyer and send a legal notice to your vespa dealer at the earliest. Atleast try to threaten them that you would go legal way, things will start moving from their side. Try negotiating with them to take back their BS-4 Vespa, pay the price difference for BS-6 vespa, take a copy of Team-BHP PDI checklist , forget the past and enjoy your new ride. I hope things will be as easy as I said, but don't give up, pursue it till you get what you rightfully paid for!

P.S: One of our colony residents did not register his Tata Hexa which he bought in November 2019, it was a BS-4, there is no way he can register it now. He was warned by cops in a regular check up that the vehicle will be seized next time if he doesn't get the issue sorted out. The vehicle still wears faded yellow temporary registration stickers, and is parked on the street abandoned. (In this case it's the owner's fault as he bought the vehicle last year and waaaayy before government and supreme court dead line.
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Old 26th August 2020, 06:45   #9
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1. There is a system of PDI. What was the dealer doing? He does not make the scooters but he surely needs to PDI it as per norms.
2. Even the wobbly scooter you shouldn't have taken. You should have returned it ASAP!
3. There is nothing like a verbal communication whenever money is concerned. You should have taken it in writing or returned the scooter.
4. File a written complaint with your local RTO. With their complaint and the BS6 temporary registration file a written complaint with the RTO where the dealer is located. Take a receiving of the complaint from the RTO on a photocopy of the complaint you've submitted along with the photocopies of the documents.
Do not give your original documents.

This will lead to a showcase notice from the RTO to the dealer with respect to his trade certificate.

If his trade is cancelled he cannot sell anymore vehicles.
He will then fall in line. Either he will get your vehicle registered or he will now give you a new BS6 vehicle or he will return your money.
I'd suggest take back the money. No point sticking with such a dealer.

Customers shouldn't take any crap in the euphoria of buying a new vehicle. That is what you did!

I'm a dealer. My only concern always is that my paperwork is strong and no one can claim any wrong doing by me. Just no one!

This not only protects me, it also protects and gives peace of mind to my customers. That should be the objective. But then some dealers are just stupid. And these kind don't last very long.

Quote:
Originally Posted by TwinAlco View Post
This is worrying! I have purchased a brand new bike recently but the invoice only shows the ex-showroom cost? Nowhere is the total invoice price I paid mentioned.

The tax paid and insurance receipts have been given to me separately though. Should I be worried?

No. You shouldn't be worried at all. Invoice is a separate thing. It is an item sold to you. That's why it has the ex showroom and GST mentioned.

Insurance and RTO tax is a service provided as a agent and this does not entail any taxation on the dealer so the receipts have been given to you separately.

Don't worry.

Mods: Apologies for the multiple posts. Kindly merge them. Will try and make multi-quote posts in the future. Thanks.

Last edited by vb-saan : 26th August 2020 at 09:17. Reason: Back-to-back posts merged; please use edit/multi-quote options when posting back-to-back. Thanks!
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Old 26th August 2020, 07:27   #10
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Re: Invoice fraud / scam by a Vespa dealer - Kings Auto, Telangana

Quote:
Originally Posted by navpreet318 View Post

Insurance and RTO tax is a service provided as a agent and this does not entail any taxation on the dealer so the receipts have been given to you separately.

Thanks for your reply. However just curious, if the RTO and insurance is a service, is it not liable for any GST?
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Old 26th August 2020, 08:47   #11
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Re: Invoice fraud / scam by a Vespa dealer - Kings Auto, Telangana

Quote:
Originally Posted by TwinAlco View Post
Thanks for your reply. However just curious, if the RTO and insurance is a service, is it not liable for any GST?
Insurance will have GST mentioned in the policy itself. As for RTO charges - two components

1. Payable to the RTO in exchange for registering the vehicle
2. Some added money to that which is commission to the RTO broker + bribe to the RTO official who is registering it

That is why you are not going to get any proper accounting for the part 2 above
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Old 26th August 2020, 08:50   #12
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Re: Invoice fraud / scam by a Vespa dealer - Kings Auto, Telangana

I am no legal eagle, but if the dealer claimed to be an authorized dealer and is not, it might be sufficient grounds for a separate case under IPC 420, which Vespa should be very interested in pursuing.
Even if it is not an authorized outlet, IMO selling faulty goods (invoice and payment receipt should be proof enough) along with the BS6/BS4 fiasco is also grounds for a case.

I would suggest get hold of a good lawyer. File as many separate cases as you can. That should mount up the pressure. Try to get Vespa on board (their image is being tarnished).
Also this is the age of internet. Publish reviews on as many sites/boards as you can. Monitor responses. For all you know there are others who have had similar bad experiences. Tell them you have filed cases and encourage them to do it as well.
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Old 26th August 2020, 08:54   #13
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Re: Invoice fraud / scam by a Vespa dealer - Kings Auto, Telangana

If the person owning the dealership is habituated to cases against him trying to sue him may be a bad idea. Put pressure through the media, RTO officials cancelling the trade certificate, through Vespa etc.

Quote:
Originally Posted by RedTerrano View Post
I am no legal eagle, but if the dealer claimed to be an authorized dealer and is not, it might be sufficient grounds for a separate case under IPC 420, which Vespa should be very interested in pursuing.
Even if it is not an authorized outlet, IMO selling faulty goods (invoice and payment receipt should be proof enough) along with the BS6/BS4 fiasco is also grounds for a case.
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Old 26th August 2020, 09:14   #14
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Re: Invoice fraud / scam by a Vespa dealer - Kings Auto, Telangana

Quote:
Originally Posted by TwinAlco View Post
Thanks for your reply. However just curious, if the RTO and insurance is a service, is it not liable for any GST?

No there are 2 types of service. One as an agent. Another as a Pure Agent. Since all amount is going to the insurance company and the RTO, it is considered under Pure Agent.

Else the customer has to shell out another additional 18% GST. If the government changes it's stance then the consumers should be ready to shell out another 18% over and above these amounts.

Also I'd like to add that RTO is itself a tax. Taxation on tax isn't a part of GST.

And you're already paying GST to the insurance company.

Last edited by navpreet318 : 26th August 2020 at 09:19.
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Old 26th August 2020, 10:30   #15
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Re: Invoice fraud / scam by a Vespa dealer - Kings Auto, Telangana

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Originally Posted by hserus View Post
If the person owning the dealership is habituated to cases against him trying to sue him may be a bad idea.
In my opinion, the more the merrier. As per this article, from April 2020, class action suits are now a legal option in Indian consumer courts.

https://www.hindustantimes.com/india...QNepNPyKJ.html
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